- 27 October 2016
- Posted by: Lucinda
- Categories: Success Story, supplier finance, Uncategorized, working capital finance
“When we hit our bank funding limit, we thought we’d have to turn down orders…then we discovered Supplier Finance, which transformed our business”…
When this Electronics Goods Importer won a large order from a key customer, they approached their bank for additional finance to pay suppliers. They already had bank finance including invoice discounting, overdraft and term loans. It was then they realised they’d reached their limit with the bank – and they didn’t have any collateral to secure further bank borrowing.
We met the owners and reviewed their funding requirements. We quickly identified that Supplier Finance would suit the business, given the strong balance sheet. We sourced a €450K Supplier Finance facility for the business, secured by a credit insurance limit on the client. The facility allowed them to pay their suppliers upfront, and gave the company the flexibility to repay the funding within 120 days. The Supplier Finance provided this business with the vital working capital it required to fulfil orders and achieve growth, without impacting on any existing funding arrangements. And there was no need for debentures or personal guarantees.
“This flexible funding was in place very quickly and it’s great – we just use it when we need it…it’s given us the extra cash we needed to realise our business growth plans”